According to the findings of Fidelity International, nearly half of Briton’s approaching retirement age plan to use their other forms of savings to supplement their pension but the vast majority could risk using it all up before they die.

Those who will use their savings to maintain their lifestyle once they finish working will live increasingly longer and therefore many underestimate precisely how much of their savings they will use up.

Fidelity International’s findings showed that nearly three-quarters (70 per cent) of over 55s had no idea how much of their savings they would withdraw to support them through their retirement years.

“People approaching retirement have yet to fully grasp the implications of increased longevity,” said Simon Fraser, president of institutional business at Fidelity.

“People could find themselves in retirement for up to 35 years, almost as long as they spent in their working lives.”

Mr Fraser cautioned against underestimating how much of their savings the older generation would use as burning out all of their investments could mean falling back on state and company pension benefits right when expenses will likely increase due to the need for greater care.

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